§748 Abandonments

Summary

The Corporation may ask the Commission for permission to abandon any rail line it owns. Such abandonment requests follow the rules in this part and are not handled under chapter 109 of title 49 unless this part says so. If the Corporation files an abandonment request before December 1, 1981, the Commission must approve it within 90 days unless someone makes an offer of financial assistance under subsection (d) in that 90-day period. Before November 1, 1985, the Corporation may also file a notice that a line has insufficient revenue; after a 90-day wait it can then apply to abandon that line, and the Commission must approve within 90 days unless an offer of financial assistance is made. Offers of financial assistance follow section 10904 of title 49, and the Corporation must give any potential offeror the information the Commission requires. When an abandonment under the pre-December 1, 1981 rule is approved, the Commission will appraise the line’s net liquidation value and publish the appraisal. Appraisals cannot be appealed. If within 120 days the Corporation gets a bona fide offer to buy the line for 75 percent of that appraised value, the Corporation must sell and the Commission will set fair joint rates unless the parties agree otherwise. If no offer arrives, the Corporation may abandon or sell the line but may not dismantle bridges or other structures (excluding rails, signals, and rail facilities) for 120 days; the Secretary may extend that ban another 8 months if he accepts all related liability. If a buyer from the 75 percent sale abandons the line within five years, proceeds from track liquidations go to the U.S. Treasury general fund. Section 10903(b)(3) of title 49 does not apply to these abandonments, and employees who were protected under subchapter V immediately before August 13, 1981 and lose jobs because of the abandonment are eligible for protection under section 797 of this title.